The Director's Commentary of the ASX.
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Asset maintenance, mining and construction company, SRG Global (ASX:SRG):
has secured significant new contract awards with existing Tier 1 clients valued at ~$80 [million].
The contracts are with South32, Fremantle Ports and BCI Minerals.
Funds management company, Magellan Financial Group (ASX:MFG):
Magellan InReview 2022 […] has been shared with shareholders and can be found on Magellan’s website
Two Magellan posts in the same day.
It has been a rough year for Magellan: down 71.51% on the year, losing major institutional fund mandates, losing the co-founder and CIO.
The 2022 InReview conveniently avoids these issues with the focus on insights relating to its global portfolio.
‘The world confronts an unusual number of difficulties’ — the annual investor letter from Global Portfolio Managers Nikki Thomas and Arvid Streimann.
Good Sunday reading non-the-less.
Concussion management technology company, HITIQ (ASX:HIQ):
has renewed its CSX Concussion Assessment agreement with the Australian Football League (AFL) [including] the Victorian Football League (VFL).
The agreement covers the 2022 and 2023 seasons and will provide concussion assessment functionality to:
2000 players, comprising 18 AFL teams, 14 AFLW teams (increasing to 18 AFLW teams in 2023) and 21 VFL teams.
2000 players seemed high, but I get I never thought about it, and 2000 over 3 leagues actually seems reasonable.
Insurance company, QBE Insurance Group (ASX:QBE):
has identified instances where the policy pricing promise was not fully delivered.
Which is code for: “ripping off customers”. The admission is as a result of ASIC’s industry review.
QBE will record a provision […] of US$75 million before tax.
Which is A$109 million. Which makes me think why they decided to report in US dollars instead of AUD.
QBE Group CEO, Andrew Horton said:
We are disappointed by the findings of the review and apologise to those of our customers who have been impacted.
He was quick to point out that:
QBE has been investigating pricing practices dating back several years, across a number of different policy administration systems and products.
Translation: “it’s not my fault I swear”.
Shares down 1.11% at the close.
Outdoor, lifestyle and sports company, KMD Brands (ASX:KMD):
advises that Reuben Casey has given notice of his resignation as Kathmandu brand CEO.
Casey has been with Kathmandu for over 12 years:
serving as CFO, COO prior to being appointed CEO.
Interestingly:
Michael Daly will act as interim Kathmandu CEO while options for a replacement are assessed in the weeks ahead.
Has Casey left effective immediately? Strange.
Specialist funds management company, Magellan Financial Group (ASX:MFG):
[has] appoint[ed] Mr David George to the Board of the Company as well as the Board of Magellan Asset Management […] effective today with the commencement of his employment.
What’s his employment?
Mr David George commented “I am excited to join Magellan as CEO.”
Big shoes to fill!
Previously, David George was the Future Fund’s deputy chief investment officer (Australia’s Sovereign Wealth Fund).
His base salary will be $1.8 million — must be nice.
Premium food company, Pure Foods Tasmania (ASX:PFT):
FY22 revenue up 34% from $7.7 million to $10.4 million.
Pure Foods has a portfolio of premium food brands from Tasmania, including, Daly Potato Co., which saw:
strong sales revenue up 37% in FY22 vs FY21 with $2.55 million in sales.
What a little business selling Tasmanian-farmed potatoes. I love this bit:
Potato & Gravy relaunch is now the focus for Daly in FY23 […]
The packaging of the Potato & Gravy will be 100% recyclable.
Cool company — I will keep an eye on them!
Digital engagement and business intelligence company, Rewardle (ASX:RXH):
has established a $290k financing facility for its FY22 R&D activity […] with specialist R&D lender Radium Capital.
Today I learnt that specialist R&D lenders exist.
Also, it’s worth looking at the announcement — it must be the only company to have emoji in their ASX announcements.
Software solutions company, WiseTech (ASX:WTC):
upgrades its FY22 guidance, last provided to the market on 23 February 2022.
To what?
FY22 revenue is expected to be at the top end of $600m-$635m guided range and the expected EBITDA range is increased to $310m-$320m from $275m-$295m […]
Shares closed up 3.42%.
Managed fund, Magellan High Conviction Trust (ASX:MHHT):
recorded a negative return for the quarter. […] No stocks contributed over the quarter.
Shares down 14.2% over the quarter.
I enjoy reading the market commentary that accompanies these trust updates — I’d recommend reading if you haven’t.
